Kevin Rose, founder of Digg, posted some digg worthy iPod rumors and a photo of what is supposedly the new iPod nano with the tall form factor we already reported about.
Besides the new nano the iPod touch is supposed to get some cosmetic changes. Kevin Rose also says that his sources tell him about rather large price-cuts for iPod players to distance them from the $199 iPhone.
The new iPod touch would also come pre-installed with the iPhone / Touch OS 2.1 that is currently in beta. Apple is also supposed to release a major new version of iTunes this fall with iTunes 8.0.

The new iPod updates are supposed to be announced in the next couple of weeks. If any of these rumors come true is up in the air, as always. It is clear though that Apple will bring new iPods for the Holiday Shopping season.
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